Tuesday, December 16, 2008

The development and trend of China's IPTV Industry

Development of IPTV

IPTV as a new television show of the new forms of digital media, increasingly valued by customers become an irresistible trend. With the global trend of rapid development of IPTV, along with domestic operators of commercial IPTV test areas and gradually expand the scale of the IPTV consumers in general, as well as the rising level of awareness in the total amount of small-scale users on the basis of maintaining China's IPTV A steady and rapid growth, IPTV users in 2003 from 1.8 million in 2004 to 46,000 in 2007 increased to 1,208,000. To enter in 2008, although the telecommunications industry in the industrial restructuring of the various aspect of the delay was caused by Weila set against the backdrop of the adverse effects of China's total number of IPTV subscribers is still maintained a sustained and rapid growth. As of the third quarter, the total number of subscribers reached 2,200,000. It is estimated that by the end of 2008, the National IPTV subscribers will exceed 3,000,000, and last year increase to more than 1.5 times.

IPTV services such as Internet audio and video programs confirmed the development of the telecommunications industry media properties. On the TV content itself with traditional television (cable, wireless, satellite) compared to, IPTV may not make a difference. However, due to network the existence of interactive features, so IPTV can be more readily available, such as video-on-demand, interactive games, such as interactive value-added services. Telecom restructuring has changed the existing structure of the telecom operators, China Telecom will be the development of IPTV pioneer, China Unicom is the IPTV business of followers, China Mobile will be relying on its financial strength, will be the development of IPTV as part of its fixed-line business, the main means of , And the development of the industry for more help.

The existence of the development of IPTV in China and its policy of the reasons

1. China's major IPTV Development

IPTV represents the development direction of the three networks. However, the development of IPTV in China the status quo is not satisfactory, in particular the overall size of the apparent small. A huge user base of broadband IPTV is a solid foundation for sustainable development. How to broadband users to develop IPTV users of telecommunications companies, such as IPTV is the main operator needs to be urgently addressed.

IPTV is set to the Internet, telecommunications, entertainment and so on into a new business, which involves not only TV but also end PC terminals. As a result, traditional single telecommunications management adapted to a certain extent, the development of IPTV business. From 2003 to date, after five years of operation, operator of China's IPTV business model is still faced with the problem and the ecological chain, such as content, business model, charging patterns and ecological chain, and so on, are still faced with the problem of sustainable development, but the operators Are actively exploring their own development model. So far, it can not be said to have found a fully fit development of IPTV business model and profit model.

IPTV and the like, from a global point of view, digital TV, including the integration of business operations are still in the exploratory stage. The cost is profitable addition to the factors, the size of the user to expand and enhance its ARPU has become key. The development of digital TV is the case, and only rely on traditional advertising profits are also problematic.

IPTV is a digital content such as digital media to attract new users to one of the fundamental driving force. With the new digital media and the explosive growth of per capita consumption of media increases, content is king coming days. However, the main operator of China's major IPTV - China Telecom, China Mobile and China Unicom, and other state-owned telecommunications companies are not content with a competitive advantage. China's Internet copyright chaotic situation, as well as free business forms, the value of IPTV content to form a larger pressure. IPTV part of the operating costs of intellectual property rights have already suffered too much and so on; the current spread of IPTV mainly based on traditional television programs, new attractive new digital media content still lack. In fact, even if our country is the traditional television programs can not satisfy the audience's thirst for media content, only 15% of the television program is broadcast from the self-made content.

IPTV has the characteristics of the regional market competition. From the perspective of competitiveness, each of the IPTV operators are facing competition is the first local radio and television systems. To a large extent, IPTV greatest obstacle to the development of the industry from local radio and television systems. At present, some parts are from a building, agriculture and other industries to teach business to start, gradually expand in the telecommunications and IPTV operators to cooperate on the scope and level of cooperation.

2. IPTV development in China's deep-seated reasons

The development of IPTV in China, there are many problems can not be denied that with the market and enterprises are closely related, and that the market mechanism based on the relationship between restricting the decisive factor in the development of IPTV. For example, does not have the right business model and profit model. At the same time, policy barriers to the development of IPTV is a major constraining factor. China has adopted a bottom-up, up and down combination of the three networks to promote institutional and policy innovations. Jan 8, 2008, the Office issued in 2008 【1】 release, the three networks emphasized the need to promote, encourage each other and opening up telecommunications and broadcasting and cross-business. The article clearly for the first time a state-owned capital to participate in the construction of digital TV access network, such as for the integration of IPTV business to clear away the obstacles to the policy. January 31, the former General Administration of Radio, Film and Television and the Ministry of Information Industry jointly issued the "Internet audio-visual program service regulations," the official beginning of the implementation, in order to regulate the Internet, IPTV, including audio-visual program service order to provide a legal basis for some of the amendments to the "Internet , And other audio-visual programs to disseminate information network management practices "for non-broadcasting businesses unfair regulatory approach.

However, the three networks in China-related institutions and policies are still inadequate and contradictory, some of the more principled policy, the lack of actual operation. Based on the traditional industry sector interests and the interests of the relevant government departments may make their most favorable interpretation, which will continue to constraints such as the integration of IPTV business. The current policy of the main problems: First, the ownership of discrimination, and the other is discrimination sector. China's national conditions, as well as telecommunications does not have the contents of the competitiveness of the fact that the decision of the IPTV industry out of Radio, Film and Television and difficult to separate. With the IPTV industry gradually in-depth, with the existing operators, such as a license to carry out the main co-pilot's success, since the demonstration effect of industrial development to help grow. However, if we do not change the system of local radio and television hostile attitude, even if the telecommunications companies get IPTV licenses are difficult to break the shackles of local radio and television. Therefore, the IPTV business operations, the existing policy framework, the development of IPTV to do a good job of the top-level design, and for local radio and television departments formation of a strategic alliance (at least one of the partners), with local radio and television industry to achieve win-win cooperation Is essential.

The development trend of China's IPTV

Industrialization, information technology, urbanization, marketization and internationalization in-depth development of China's modernization facing the new situation and new tasks. Promote the integration of information technology and industrialization in China is facing long-term task. China's radio and television broadcasting, telecommunications and the Internet, and so different from the original network of industrial facilities is to speed up the separation of industry from the industry to integrate the pace of industrial development is the trend. Against this background, especially 2008 as a new round of political reform and related policy adjustments, China, including IPTV, the business of the three networks are entering the period of rapid development.

IPTV competitive advantage from their personal, humane content of television programs and interactive forms. With the application of the universal constant, the size of the expansion of the market, IPTV market will attract more content providers, content integrators and value-added service providers to enter, they will be content innovation, business model to explore the more extensive Development. With the TD-SCDMA large-scale commercial and a new round of the completion of the restructuring of telecommunications, 3G has entered the mass market. From the users point of view, 3G end-user IPTV can be an effective extension of the terminal. With 3G terminal personalized, IPTV people-oriented development goals will be a great release.

With the new round of restructuring of the telecommunications, operators of different development strategies for the development of IPTV will be a different form. However, the Encyclopedia of the three telecom operators in terms business, IPTV will be in its portfolio a very important area; IPTV licenses have been 5 IPTV license operators has With the 2008 Beijing Olympic Games force the beginning of IPTV; and radio and television operators Two-way digital television business through the transformation of the interactive and also to promote the new digital media transition. It is estimated that by the end of 2008, China will have 3,000,000 IPTV subscribers by 2011, China's total number of IPTV subscribers will reach 22,000,000.

IPTV industry is a win-win situation and the development of digital TV the only way to integration. IPTV media properties require operators IPTV market-based, network-oriented and customer-focused, with the media, entertainment and information content of the service. IPTV business operations in the heart of the problem is not access bandwidth, but on the content, which is the weak telecommunications. Therefore, in order to meet the needs of the market must play IPTV and digital television functions complement each other. In addition to the functions of each other, but also in the area covered by each other on. In those areas beyond the reach of cable TV, IPTV has a lot of room for development.

IPTV is the next generation network (NGN) in one of the most important business, the future digital home is a very important form of a business. With the development of ICT, telecommunications network, Internet, cable television network has become an inevitable trend of the three networks. The three networks require the development of PC and TV terminals terminal can be connected at the same time the Internet and cable television network, access the Internet at the same time be able to receive digital TV broadcasting. Access to a variety of ways in order to be able to co-exist to ensure that the best way to provide unicast, multicast, and broadcast a two-way interactive services, to meet the new digital media. In such a trend, the telecommunications and broadcasting industry value chain integration is also bound to follow suit to achieve. IPTV and digital TV operators should be the main differences aside and learn from each other each other's development strategy, operations experience, the three networks to work together to promote and achieve a harmonious development of the industry's new win-win situation.

Fourth, to further promote the development of IPTV in China's policy initiatives

Comply with the general trend of the three networks to promote the development of IPTV is a systems engineering, government and the need to be responsible for their own market, and mutual cooperation. "Visible hand" of the market and the "invisible hand" of the border have their own role, the market mechanism is the basis for policy is to protect the mechanism. IPTV in the world and the rapid development of China's accelerating industrialization and information technology integration of the environment, the need to take full advantage of market mechanism on the basis of the three networks to strengthen the system of policy effects, based on the size of the effect of IPTV, telecom and nurturing of Radio, Film and Television Competing effect, to promote digital TV and other new media cluster effect, in order to effectively promote China's IPTV industry to further the sustained, rapid and coordinated development.

1. Strengthen the system effect, amend the "dissemination of information network audio-visual programs permit" issued classification standards, expand the scope of opening up the domestic IPTV, the development of Internet audio-visual services, business directory guide, the development of IPTV to do a good job of institutionalization and standardization work to co-ordinate the promotion of the three network Integration policies, to achieve an effective policy coordination to eliminate the constraints of the three networks structural obstacles and policy factors.

2. Based on economies of scale to the planning-oriented, up and down, make breakthroughs in key areas and expand the scope and application of IPTV market, promote the industrialization of operations. The three networks aim to promote the industrialization of IPTV operators. Radio, Film and Television IPTV sector to increase the scope of application for a license and license number of state-owned telecommunications companies issuing national IPTV operator license. At the same time, have to deal with the rapid IPTV business applications and can not be dismissed without cause the application. Encourage strategic investors to invest in state-owned IPTV to provide digital content-related businesses, enhance the number of IPTV content supply capacity.

3. Cultivate a competing effect, the IPTV market supervision in accordance with the law unfair competition and monopoly (especially administrative monopoly), to encourage telecommunications, radio and television operators such as the strengthening of the main technical, operational, marketing and strategic levels.

4. Telecommunications companies with experience in operating and capital to promote digital TV access network construction and transformation of the backbone network to speed up the pace of industrialization of digital TV, IPTV and audio-visual programs such as Internet services become common digital new media business market.

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